Bitcoin (BTC): The Giant Falling Wedge No One Is Talking About

Bitcoin (BTC): The Giant Falling Wedge No One Is Talking About

When a market is pushed to an extreme, investors begin to allow sentiment to influence their decision making more than cold hard facts and numbers. This kind of behavior is not confined to the bull market where we see investors deliberately ignore the parabolic rise. Around the end of a bear market when the bearish sentiment is at its peak, investors tend to ignore bigger patterns and instead they focus on smaller time frames to predict bigger outcomes. They are so focused on smaller time frames that they lose sight of the big picture. There is giant falling wedge forming on the daily chart for BTC/USD right now and yet it is very surprising that nobody is talking about it.

Make no mistake, this is too big to go unnoticed and a lot of people are watching this play out. However, they do not want to bring it to your attention while they are shopping. Think about it, the price is now at the extreme end of the falling edge and all it would take is one sharp move to break above it. In addition to that, we have the price resting atop the 21 Day EMA which means it also has a strong support to protect against a sharp move to the downside. This would be the best time for a long time investor to start buying. As for traders, it is best to wait to see which way the price breaks out before entering a position.

A lot of people seem to think the cryptocurrency market will go through the same four year cycle as before and it will take another three years or more before the price can reach a new all-time high. If you look at the state of the global economy, we do not have that kind of time. It has all got to happen now, in the months ahead not years. Whether or not cryptocurrencies in general and Bitcoin (BTC) in particular will behave as a safe haven asset is another debate. Regardless of that, it will have to react to the upcoming crisis. A lot of things are going on in the US and when all of it blows us, we will see smaller economies suffer as well. People that can already see what is going to come are already preparing for it and they call themselves preppers.

Bitcoin (BTC) is trading above the 200 Day MA and it is yet to break and/or close below it. As long as it stays above that level, we remain bullish on the long term outlook of Bitcoin (BTC). As the US Dollar goes down during the upcoming crisis, BTC/USD will be a direct beneficiary and we will see its price rise astronomically not just from a decline in the value of dollar but also as a result of more people turning to Bitcoin (BTC) to protect themselves against the risks of failing government and economies worldwide.

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